Market tightness

Tightness is defined as a point in time where economically, it is very difficult to invest, but it is far easier to sell or to remove investments in return of monetary rewards. The higher the level of the tightness, the more expensive, less common, and less reliable the market becomes. For example, during the late 1990s technology boom in the West, Information Technology companies were very difficult and expensive to buy a part of, through stock, loan, or other methods, due to the tightness of competition in the market.

The tightness is a result of severe competition in a single market. Competition, which is completely capitalist in breadth and depth, is defined as when multiple parties are looking for similar products in a single market, therefore raising the value of that product. The competition directly and crucially effects the level of tightness in a market; should less demand come in for a product, that product is easy to get; should there be a significant increase of demand by many different parties, that product would be near impossible to get. For example: Housing in Manhattan through different economic cycles. The Housing was decent in the 1960s, plentiful, due to low demand because of crime, in the 1970s, again plentiful in the 1980s, less available in the 1990s because of rising incomes and rising numbers of people working in higher-income jobs in Manhattan; and difficult to come by, ultimately, by the 2000s, due to further increases in peoples' salaries, and the downsized availability of housing.

Tightness, as it exists, according to market principles, would not exist under Communism, and would be greatly regulated under Socialism, due to public control over markets, which can alter the level of demand and supply for the population.

See also

• Competition
• Capitalism